A couple of days ago, I read a post with the comment Monzo, the bait and switch bank. At the time I didn’t think much of the comment.
But now I’m wondering about it…
There was a massive furore around the introduction of charges, for foreign ATM use, and this upset many people who thought they’d signed up for a foreign-use fee-free card.
Recently there’s an announcement that some of the core functionality, the top-up, of the prepay card costs Monzo a lot of money and, whilst it has been reintroduced on the current account, there is now the prospect of charges for this functionality, also.
And, of course, many thought they were getting a prepay card with a specific purpose and did not know of the planned current account which they don’t want.
Monzo has enjoyed great publicity through the press and word-of-mouth. It’s grown to around 450,000 customers before the roll-out of the current account. Their customer service seems good, they use emoji, the card colour is unusual for a bank. They’re not like other banks.
Was this just one massive exercise in numbers to get customers for the current account? How is Monzo going to be profitable? It seems the costs they’ve incurred have taken them by surprise. Is Monzo a bait and switch operation? Is the gloss wearing off for many customers?